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PHILIPPINES REPORT E 0022

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NATIONAL:
ENVIRONMENTAL ACTION
PLAN
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Philippine Strategy for

Sustainable Development
Part 1
A Conceptual Framework
January 1990
Public Disclosure Authorized

This report is property of Philippines

 REPUBUC OFTHE PHIUPPINES

I
PHILIPPINE STRATEGYFOR
SUSTAINABLEDEVELOPMENT
PART1
A CONCEPTUAL FRAMEWORK

DEPARTMENT OF ENVIRONMENT OF NATURAL RESOURCES

JANUARY 1990

( 'I *.+ 5v11 29a

I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
i
 TABLE OF CONTENTS a
lPage
FOREWORD
IMPERAIIVESIN THE
1 RATIONALE:THEECOLOGICAL 1
PHIUPPINECONTEXT
2 THE PHIUPPINESTRATEGYFORSUSTAINABLE
DEVELOPMENT(PSSD): THE CONCEPTUALFRAMEWORK 4
2.1 Goals and Objectives 4
2.2 Guiding Principles 5
2.3 GeneralStrategies 6
Inrtegrationof EnvironmentalConsiderations
in DecisionMaking 6
ProperPricingof NaturalResources 7
PropertyRightsReform 8
Establishmentof an IntegratedProtected 8
, System
~~~~~~~Areas
Rehabilitationof DegradedEcosystem 9
Stengthening of ResidualsManagement
in industry (PollutionControl) 9
Integrationof PopulationConcemsand
SocialWelfarein DevelopmentPlanning 10
InducingGrowthin RuralAreas 10
Promotionof EnvironmentalEducation 11
Strengtheningof Citizens'Participation 12
and ConstituencyBuilding

3 ASSESSMENT
OF MAJORSECTORS 13
3.1 Population 13
3.2 Environmentand Natural Resources 15
Forests 15
ProtectedAreasand Biodiversity 17
 Urban Ecosystems 18
Ii
|Freshwater Ecosystems 22
Coastal Resources 23
Land and MineralResources 25
3.3 Agriculture 26
3.4 Industry 28
3.5 Energy 31
FOOTNOTES 34
APPENDIX
| ~~~~Figures
] 1. ForestArea and Population(1930-1984)
2. Correlationof PopulationDensity
and ForestCover, 1980
3. PopulationDensityand PovertyIncidence
by Region,1980

2
I.

; __ _ _-
 FOREWORD

*TheDepartmentof Evironment and Natural Resourcesinitiatedin 1987 the process

offorrnuang a PhilippineStrae for Sustaiable Dewdopmet (PSSD).
Througha seriesof consuons with the differet sectorsof society,the concept took
form and substance.
j Jina niona workshopheld on June 6, 1988,a fomal resolduonurgingthe President
I Congress-f the Repubic of the Philippinesto adoptand implementa Philppine
d dithe
Strategyfor SustainableDevelopment,waspassed
Folowing the natonal workshop,the draft PSSD framework went tirough a seniesof
regionaland sectora consulatons.
On June 22, 1989 it was presentedto the CabinetAssistanceSystem (CAS) Plnaryfor
comments. CAS-CRD was then tasked to inputPSSD prinples into the formuon of
the Sate for Sustaiable Developmentin the Rural Sector. A consensuswas made fo
adopt the PSSD concept in a joint meeting of the CAS-CRD and the CabiwetClusterA
on Rural Developmenton August 3, 1989.
On November29, 1989, the Cabinetpassed CabiwetResolutionNo. 37 approvng the
ConceptualFrmework of the PSSD subjectto the followingapprovedmodifications:
1. 7he Philippine Strategy for Sustainable Development shall
address specifically the adverse impact of growth and
development such as but not limited to pollution from factories
and pesticide build up from agriculture; and the depletion and
degradation of natural resources due mainly to misuse and
. :~~~~~~~~~~~~~~~~~~~~~~~~~~~
over-exploitation.
2. It shall consist of a set of general strategies to resolve and
reconcile the diverse ana sometimes conflicting environmental,
I demographic, economic and natural resource use issues arising
from the country's development efforts; and sectoral strategies
identified after a review of the current efforts being undertaken
in each of the identified sectors.
3. The general strategies shall include the integration of
environmental considerations in decision making, proper
resource pricing, property rights reform, conservation of
biodiversity, rehabilitation of degraded ecosystem, strengthening
of residual management (pollution control), control of
I population growth and human resources development, inducing
growth in rual areas, promotion of environmental education and
strengthening of citizens participation.
4. The conceptual framework shall be the basis for the formulat.on
of strategies for each of the identified sectors, namely:
 I
I population, environment and natural resources, agriculture,
industry, infrastructure and energy.
The resolution also directs all the pertinent agencies to review the respective
developmentprograms and projectsfor consistencywith the PSSDframeworkI
T7hisdocument contains the PSSD conceptualframework incorporatingthe relevant
modications as directed in CabinetResolutionNo. 37.
I Accompanying the volume are two other documents which contain the policy and
instutona trefbrmmeasures and action progran initiated and proposed by DENR
Thse documents representthe effortsundertakenby DENR to operationalizethe PSSD.
Pertinentsectoralagenciesare now in the processof reviewingtheirpoeices,progrms
and projects or consistency with the PSSD fraork. Inal outputs haue been
submitted to DENR and are containedin a septe document.
The same process will be undertaken at the sub-national levels for more accurate
focusing of the areal diensionslinplications of the strateg.
transktion of the PSSD conceptualfrwnework will have reached its final cycle
*The
wih thepreparation of a GovemmentAction Program
The GOP Action Prorn whie specificailyaddrsing the concernsof a strtegyfor
4 sustainable development will be treated as ar; itegr component of the coy's
S national deyelopfiewg ptflL

-i
 THE PHILIPPINE
STRATEGY
FORSUSTAINABLEDEVELOPMENT

PART I CONCEPTFRAMEWORK

I ~~GOAL ASSESS
SUSTAINABLE OF MAJOR
t ~~DEVELOPMw SECTORSJ

GENERAL |GUIDING ll
STRATEGIES PRINCIPLES
4 '' - g1 '
Ak 1~~~~~~~~~~~I

PART2: POLICIES/POLICY
i INSTRUMENTS

PART3: ACTIONPROGRAMS/
INSTITUTIONAL
REFORMS
 1 RATIONALE:THE ECOLOGICALIMPERATIVESIN THE PHIUPPINE
CONTEXT
One of the more revealing lessons learned during the past two decades of
environmentW awakeningin the Philippinesis that the maintenanceof the earth's
delicatebalanceby the mereprophylacticsof pollutioncontroland otherecological
mitigationmeasurescannot ensure sustainabledevelopment There is now a
compelflng need to overhaul the traditionalconcepts of development,with its
exclusivefocus on economic principles and the political economy of natural
resources. In 1979, RafaelSalas was alreadyattunedto this emergingworld view
when he said:
We are temiingiobally towards a more holisticview of development
withisemphoasiszgnregmmiactorsopmfrzms. Pop tn
growthand developmentpatternsnot only affect the demand fOr resourcesbut
asogenerateenvironmentalchangeswhichwillhaverepercussionson thefutue
canyng capacityof the earh. At thegloballevel it isnot only necessaryto take
ito amount the resources red to feed, clothe and shelter a growing
populton but alsothe typeof tedznooW whichwil make thispossik methout
worseningthe environment It is, indeed,proper to ask at ths point how far
populaton and development plans are consisen with the prudent use of
resourc, and do not bringabout the degradadonof owenvironment"(1)
MaostFirpinosstll dependon naturalresourcesystemsfor their subsistenceand
mustthereforeconfrontthe inexorablerealityof ecologicalprinciples. Two thirds
of the Phifippinepopulaton live in the rural areas and depencdon agriculture.
fisheriesandforestry. Soilerosion,deforestation,polluton and decliningfish catch
ai pointto the fact tha the limits of the naturalcarryng capacityare alreadybeing
1 exceeded Whileit is true that we can extendthe limitsby technologicalfixessuch
as the green revouion and by industrialization, theseresponsestake time andthe
gallopingpopulaton growth extinguisheswhateverlittlegainswe make. Secretary
; Fulgenciao S. Facoran vividly describesthe nationalsituation:
.^ itha hih population growthrate the countryis like a pate c z a
treadmnifufiiouslyrunnis faerandfaster, eachstrid becomingmorediffult,
bu not gatting anywherm' (2)
Poputa'don
Pressure
a Indeed,there are strong coincidencesbetween population growth, resource
depletion,environmentalquality, and the incidenceof poverty. These apparent
linkagesare graphicallyportrayedin Figures1, 2, and 3 for the Philippinesituation.
Theyare the resukof the developmenteffortsof the past whichfailed to consider
both populationand environmentas resource basesthat must be nurtured and
taken care of as the central assets behindthe developmentprocess.(3)Figure 1
showsthe increasingpopulaton and the decreasingforest cover during the last
five decades. Since the Philippineswas almost all forest in its naturalstate and
since the country's topography and ecology appear to be significantlycontrolled
by the ecological dynamics of the forests,the state of the forests could.serve as a
quaitave surrogate of environmental quaiity. Figure 2 reinforces the observaton
of the connection between population and forest cover because it exhibits a clear
correlation between popuation density and forest cover as they occur in the
A

1
 various regionsof the Philippines.The linkage betweendevelopmentand forest
cover is shown in Figure 3. This figure exhibitsthe regionalvariationsof the
correlabonbetweentheincidenceof povertyand remainingforestcover. Thereare
a host of other quantitativeand qualitative indicatorsthat could testify to the
ominous declineof environmentalquality such as the ravagingof fishinggrounds
and coral reefs,the pollutionof rivers,lakes, and bays, and the clearlyvisibleair
pollutionin Metro Manila.(4)
Economic Costs
It Is possibleto get a roughestimateof the economiccost of deforestation.
The
conversion of one hectareof old growth forest amountsto a loss of about 100
cubic metersof commercialqualitylogs, not to mentionits potentalfor sustained
yield at a growth rateof about 2.4 cubic metersper hectareperyear. If theseare
computed atthe currentpriceof about P2,900per cubicmeter,andassumingthat
profit amountsto 50% of gross revenue,this will representa loss in net profit of
around P145,000 per hectare.
Estimatesshow that some 119,000hectaresof naturalforest vegetationwere
destroyedin 1988.amountingto a grossloss of around P34.5billionperyear,or a
loss in net profit of about P17.3billion. Even if these areas have been logged
accordingto recommendedpractices,loss of future revenueswould still amount
to P5.7 biflionor a total of US$12.98millionnet peryear.
4- - Deforestationis responsiblefor erosion of all uplands. Herewe also have an
indicationof the monetarycostof the loss. In the case of Magatwatershed,annual
erosionrate is peggedat 219tons per hectarefor open grasslandand71 tons per
hectare for other land uses. Using the above erosion rates as basis, actual
economiccosts of soDnutrientloss amount to P1,068to P3,392per hr tare per
year. For the Pantabanganwatershed the tota value of soil nutrientloss was
esfimatedat P2,541per hectareif erosiontakes placefrom the first 5 cm. layerof
the top soil.(5)
Thus, the unecologicaluse of forests entailshugeeconomiclosses.
j Developmentpolicies,withoutthe guidanceof ecologicalprinciples,could go
astray. This was clearly demonstrated by the past government'spolicy of
converting mangroveswampsinto fishponds in the hope of accelerafingfood
I production. The ultmate impact of this policy was the decimationof virgin
mangrove swamps from 500,000hectares in the 1950's to only about 38,000
hectaresof originalvegetationin 1985. Studiesnow showthat we havelost more
in terms of sustainablefisheriesproductionwith the lossof spawninggrounds,rich
nutrientpools and the protectivevaluesprovidedby mangroveecosystems.
According to estimates,one hectare of a fully developedmangroveplantation
could producean annualyield of 100 kgs. of finfish,25 kgs. of shrimp, 15 kgs. of
crabmeaE, 200kgs. of mollusks,and40 kgs. of seacucumberin a directharvest.(6)
The economiccost of air pollutionis not yet well studiedin the Philippinecontext
Experiencefrom the US situation, however,shows that air pollution is costly.
Accordingto the WorldResourcesInstitutein the U.S.:

2
 - Agricultral lossesfor 1987due to increaseof ozone concentration
| to US$5.2 billion;
~~~~~amounted
- On the other hand, the benefitof attainingstandardsfor particulates
|andsufur dioxideis estmated to be at US$500millionper year.
f ~~Coststo the Ecosystem
Concern, however, should not focus mainly on economic costs. An
unquantifiabtecostof forest destructionis the loss of speciesandgeneticdiversity.
Evenestmatesforthis tragic loss does not exist for the Philippines.Dr. Seymour
Sohmerof the BishopMuseumof Honolulu,who has beenstudyingPhilippineflora
for manyyears now, assertsthat we havealready lost about 40%of our endemic
flora Philippinelossescontributeto the globalloss of biologicaldiversityestimated
at about 100speciesper year. Bythe.year2000, it is predictedthat about a mirlion
specieswould havebeen lostforever.In general,a decreasein the diversityof flora
and fauna makesecosystemslessstable.
Environmental degradation has other serious implications. According to
Ganapin, "for a developing country like the Philippines, the impacts of
environmentaldegradationare muchmoreseriousthan simplyerosionor polluton.
In many cases, the social and politicalimpacts are of greaterdimensionand are
moredirect. The poor becomepoorer. And as larger pupulabonsare pushedinto
a desperatestruggle for survival,they wrought larger damageto the environment
and the cycle continues. There comesa time, however,whenthis vicious cycle
X . reachesa limitandthe fragilefabricof a stressedsocietystartsto unravel.The gun
substtutes for the plow. The fire that used to burn forests becomesfire that will
consumesociety." (7)

I ......

I
1l 1
 2 THE PHIUPPINESTRATEGYFOR SUSTAINABLEDEVELOPMENT(PSSD):
THECONCEPTUALFRAMEWORK
The only rational way of planningthe country's national progress is through
sustainabledevelopment:meetingthe needsof citizensof todaywithoutlimitingthe
options of future generationsto fulfill their needs. It Is developmentwithout
destruction;it is the achievementof materialprogress without compromisingthe
lfe-supportfunctionsof naturalsystems;it is the pursuit of higher levelsof quality
of lifewhile preservingor evenenhancingenvironmentalquality. It is the onlytrue
development. It
2.1 GOAL AND OBJECTIVES
Goal
Sustainabledevelopmentstresses the need to viewenvironmentalprotection
andeconomicgrowth as mutuallycompatible.This impliesthat growthobjectives
should be compatible not only to the needs of society but also to the natural
dynamicsand carryingcapacitiesof ecosystems.
The goal of the PSSDis to achieveeconomicgrowthwith adequateprotectionof
the country's biologicalresourcesand its diversity,vitalecosystemfunctions,and
over-allenvironmentalquality.
j ~~~~ObjeUves
The followingobjectiveshavebeen identifiedtowardthe attainmentof the PSSD
goaL
1. To ensure the sustainable utilization of the country's natural
resources such as forests, croplands, marine, and freshwater
ecosystems.
2. To promote social and intergenerational equity in the
utilization of the country's natural resources.
3. To develop management programs to preserve the country's
heritage of biological diversity.
4. To promote the technologies of sustainable lowland
agriculture and upland agroforestry through the
encouragement of research and development (R and D) and
demonstration projects.
5. To achieve and maintainan acceptable quality of air and
water.
6. To promote and encourage an exploration program for
economically important minerals.

4
 7. To promote R and D in environmentally-sound and
economically-efficient processing of the country's mineral
and energy resources.
8. To enhance the foundation for scientific decision-making
through the promotion and support of education and
research in ecosystems.
9. To promote and support the integration of population
concern including migration variables and family welfare
considerations in development programs with special
emphasis in ecologically critical areas.
1O.To expand sustantially the family planning programs and
responsible parenthood program.
22 GUIDINGPRINCIPLES
Sustainabledevelopment,as definedby the WorldCommission on Environment
and Development is meetingthe needs and aspirationsof the people
iWCED),
wihout compromising theability otfuturegenerationsto meettheirs". It is difficult,
however,to make use of a genera definitionto guide actions with regard to
particular development situations. This general definition needs to be further
explainedin operationalterms.
Operationally,sustainabledevelopmentcan be further explainedthrough the
followingprinciples,whichform the guidingframeworkfor actions underthe PSSD:

- a systems-onented
andIntegrated
approach
Inthe anaiysisandsolutionof
developmentproblems;
- a concemfor meetingthe needsof futuregenerations,
otherwiseterrnedas
inter-generational
equity:
- a concemforequityof people'saccesstonaturalresources:

- a concemnotto exceedthecanyingcapacityof ecosystems;

-livingon theinterestratherthanonthecapitalor stockof naturalresources;

- mnaintenance
or strengthening
of vitalecosystem
functonsin every
developmentactivity;

- a concemfor resourceuseefficiency;
- promotionof researchon substitutes,
recycling,
exploration,etc.
fromrevenues
derivedfromtheutilizationof non-renewable
resources;
- a recognitonthatpovertyis botha causeandconsequence
ofenvironmental
degracfation;
and
,r$l @~ - promotionofcitizens'participation
anddecentralization
in implementing
programs.

J . 5~~~~~~~~~~~
,~~~~~~~ -
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~~~~~~~~~~~~~~~~~~~i'_1
r -S DI^.IRENT OF
NVIIKNMENT*AND
Lz
_NATURAL RESOURI ES

.. __
 2.3 GENERALSTRATEGIES
The PSSD has for its core a numberof implementingstrategies.Thisis aimedat
resohingand reconciling the diverse and soietimes conflicfingenvironmental,
demo~hIc, economicandnaturalresourceuse issuesarisingfromthe country's
devepment efforts.
Integration of Environmental Considerations In Decision-Making
The underlying theme in sustainable development is that economic and
environmental concerns must be addressed simultaneously in the
planning/decision-making process. This is a deliberateshiftfromthe conventional
practice characterizedas predominantlysingle sector planningexercises. The
importanceof pursuinga mufflisectoral
approachin poDicy andplanfornulation can
neverbe overstated. For instance,policiesthat conservethe qualityof agricultural
land and protect forests improve the long-term prospects for agricultural
development Efficiencyin the utilizationof energyand raw materialsin industrial
pmcessesreduceswastesand can also reducecosts.
Merging environmental and economic considerations in decision- making
i involves a fundamental realignment of the overall objecies of development
4 planning in the light of a new awarenessof the envirounentalimplicationsof
developmentactivies. This meansthat the process of developmentshould be
viewedfrom the outsetas a multipurposeundertakingthat includesan explicitand
I definedconcemfor the qualityof the environment.Withinsucha planningcontext,
it Is especally important that analysis and evaluationstress the key role that
3 environmentalquaflitycan play in sustainabledevelopment
To effectivelyimplementthis desired shit in economicdecision-making, the
refinement of analytical tools and methodologies is crical. For instance, to
accommodatethe social and environmentalconsequencesof the misuse of the
nation's natura capital in ecDnomiccalculations,such tools as NahtralResource
Accounting,EnvironmentalImpactAssessment(EIA)and LandUsePlanningmust
I be properlyinstalledand strengthened..
Naturalresourceaccountingemphasizesthe productiveroleof natral resources
in the economicsystemr Naturalresource assets must be valued in the same
manneras man-madeassets. Inasmuchas naturalresourcesare principallythe
main assets upon which we depend for revenue, employmentand foreign
exchange,a system of nationalaccounting and analysismust be institutedthat
recognizesthem as such.
Uke economicanalysisand engineeringfeasibilrystudies,EIAis a management
I : for officials, managers and'aftected ciffzens who must make important
~~~~tool
;decisionsabou major developmentprojects. In recentyears. majordevelopment
;undertkings have encounteredserious difficultes becausoinsuffiderntaccount
has been taken of their impactson the surroundingenvironment.Someprojects
have beenfound to be unsustainable becausethey causedresourcedepletion.
Others have been abandoned because of public opposition, financial
encumbranceby unforeseencosts, very high liability for damages to natural
resources,andthe disastrousaccidentsthey havecaused.

6
I
 Given this experience,it is ciearly very risky to approve and finance a major
!projectwithout firsttakng intoaccountits environmentalconsequences,aswell as
the siting and project design considerabonsthat will minimize,or better still,
altogetherremoveadverseimpacts.
At the local/regionallevel, Land Use Planningis also seen as a basic tool for
incorporating environmentalconsiderations in the decision-makingprocess.
Optionalland-useallocationscan be determinedusing an environmentalquality
perspective,whichtake intoaccountecologicalprinciplesandthe impactof human
acttvitieson natural systemsas inputs, along with other economicand social
demands.
ProperPricingof NaturalResources
The most widespreadopportunityfor improvingresourcemanagementis to treat
naturalresourcesas truly scarce,not as if they werefree. This is done by proper
pricing based on the cost of replenishment,increasingtheir supply and providing
appropriate substitutes. In essence,this strategy aims to correct the gross
underpricing of natural resources (e.g., logs, minerals) that is substantially
responsiblefor the wastefulextractionand utilizationof theseresources.
The question of who pays for damagesto the environmentshould be part of
more wide-rangingpolicy reformsregardingthe pricing of the country's natural
resources. It has become obvious that naturalresources such as timber and
mineralsare grossly underpriced. Underpricedin the sensethat thosegiventhe
right to exploit these resourcesfor profit pay very litte of the significantdamage
costs to societ. They also sharewith the rest of socity very little of the Orents"
they geotoof exploitingthese resourcesCrent representsthe surplusafter all
cost and reasonableprofits are paid). The rentsfrom the exploitationof natral
resourcesare huge, and they have gone to only a few. The World Resources
Institute,for example,has estimatedthat for the Philippines,only 20%of the more
than P20 bilion rent from logs harvested from 1979 and 1982 went to the
Philippinegovemment To attainsustainability, the govemmentshouldrecoverthe
full economic rent for naturaland environmentalresources.
A componentof the neededprice reform strategyinvolvescharginga price on
those envirornmentalresources (e.g., air, water) which have until now been
regarded as free resources and which have thus been polluted freely and
* indiscriminately.At present,polluterscontinueto view the environmentas a mere
sink,for which they pay nothing.This conceptshould be changed.A sociaiprice
should be assignedto these otherwisefree resources. The pollutermust then
learnto internalizethis pricewithinhis profit-orienteddecision-makingprocess. If
thereis pollution,the pollutermustpayfor theconsequentsocialcosts. Thechoice
can be made betweencuting down on pollutionby investingin poDlution control
devicesor cutting down directlyon pollutiveaspectsof an actvity. In effect,the
polluterregulateshisown behaviourwithinthe contextof an environmentalpicing
system. The system is basedon the so- called"polluterpaysgprinciple.
1
o In generai,price reformprovidesa way to intemalizeenvironmental costsas part
of decisions on how resourcesare used. The advantageof proper resource
pricing in resource managementis that, once in place,it providesa self-regulating
i system. Resourceusersstill makechoicesin a waythat maximizesrealresource
costs.

7
i ~ . . . . .-
 By establishinga fair valuation of natural resources and chargingthe users
appropriately,an automaticeconomicrestrainton the wayenvironmentandnatural
resourcesare used is created.
Relevantto the successfulimplementationof such pricing mechanismsis the
development of capabilities in environmentaleconomics and the conduct of
measuresin this field. In addition,there is a need to set up supportfunds and
incentivesfor those willing to shift from pollutiveor destructivetechnologiesto
thosethat are environmentallyprotective.
Property Rights Reform
Natural resources have a tendency to be exploited as free resources by
even though they are in effect scarce resources.This is the case for
Indrividuals
open access" resources in which there is a strong tendency for misuse and
depletion.It is difficultfor an individualproducer such as a shiftingcultivatoror an
artesanalfishermanto conservean open accessresourceandunilaterallyregulate
his exploitative efforts, sincefrom his perceptionanythingthat he conserveswill
only be takenup by others. This is the famous'tragedyof the commons."
Self-regulationin the exploitationof natural resources can be achieved by
assigning secure access rights perhaps even private ownership over these
resourcesto responsibleindividualsand communities. Through secureaccess
rights,the individualor communityestablishesa lastingtie with the resourceanda
long-term stakein its protectionfor sustainedproductivty.
The needthereforeis to developcreativeand secureinstrumentssuch as forest
stewardship contracts, small-holdertimber concessions,artificialreef licenses,
communityforests,communityfishing groundsandminingcooperativesto ensure
'equitableaccessand tenurial securityn the utilizationof naturalresources.It has
to be noted, however, that an essentialconditionfor transfemngcontrol over
resourcesor cistributingresourcerightsis for recipientindividualsor comununities
to demonstratethe capacityfor the sustainabledevelopmentof such resources.
Estabilshment of An Integrated Protected Areas System
The importance of the preservation of the variety of genes, species, and
ecosystems cannot be overemphasized.The development of man and his
civilizationhas alwaysbeen based on the biologicalweafthof nature.Agricultural
crops and livestock,virtuallymost of the country'sdailyfood intake,were derived
from wild species. From wild species have also come many of the medicines
availabletoday. In biodiversityresidesthe newgeneticpool of informationneeded
to adapt to various environments. It can thus well providethe answersand
increased capacities for man to deal with future questions of survival and
development especially in the face of the rapidly changing local and global
environments.Unfortunately,this is not generallyrecognized.
Ecosystemsare composedof species,and speciesarecomposedof genesand
all theseare linkedto one another. The stabilityof ecosystemsultimatelydepend
on the diversityof genes and species.

! 8

f ._ _
 Protectedareas should thereforebe establishedfor the conservationof wildlife
anduniqueecosystems,with the end in view of conservinggeneticresourcesfor
scientific, educational, cultural and historical values. The establishment of
protectedareasshould be precededby a reassessmentof the statusof parksand
equivalentreserves. This will serve as the basis for developing rehabilitative
strategiesfor degraded parks and at the same time identify new areas where
conservationof genefic resourcesand preservationof biologicaldiversitycan be
pursued.
Rehabilitationof Degraded Ecosystems
. Rehabilitation
of degradedecosystemsis a significantstrategygiventhe massive
destructionof ecosystemsthat has alreadyoccurred. Under such conditions,
nature'sregenerativecapacityis not enough. Deliberaterehabilitativeeffortsare
needed.
Rehabilitationmust keep pace with the continuousdegradationcaused by the
increasingdemands for both raw materialsand products that come from natural
resources.As the pressureson theseresourcescontinueto intensifyso mustthe
country'scommitmentand capabilityfor rehabilitativeaction. A concertedaction,
therefore,of a magnitude never tried before in the reforestationof denuded
watersheds,mangrovere-plantation,dean-upand control of pollutionand revival
of biologicallydead rivers, and seagrasstransplantationshould be vigorously
undertaken.
Naturalecosystems, however,will continue to be threatened urnessa more
Comprehensive program on ecosystems rehabilitation is undertaken.
Rehabilitation,
therefore,hasto be Unkedto ecosystemsprotectionprogramsand
to policyreforms and instutional strengtheningthat decisivelydeal with the socio-
economicroots of ecosystemdegradation.
Strengthening of Residuals Managementin lndustry(Pollution Control)
The most commonly applied instrumentfor pollution control is "end-of-pipem
controlsystemsthat treat or attemptto limitwaste productswith standardsand
limitson the permissibleemissionsrate. Residualsmanagement,however, looks
at the pollution problem within a more comprehensiveframeworkof materials
policywhich.includes resourcerecovery,recycling,and appropriate by product
designthat save on materialsandenergy.
A move should be made towards adopting recent innovationsin industrial
process designs which are aimed at reducing waste streams, especiallyas
increasingrestrictions on disposal becomes more necessary. Reformulating
products, developing saleable by-productsfrom residuals,and redesigningor
combiningprocessesare someinnovationsthat haveoftenbeenfound to reduce
wastesand costs as well. A U.S.plant,for example,was ableto reducewastesby
66 percentby cutting on water useby 32 percent. The use of biogas digestersto
recovermethanefrom piggeryor distillerywastes is anotherexampleof poilution
reductionthrough technologicalinnovations.
In the Philippines,resourcerecoveryshould prove highlyeconomicalbecause
materialsand energy costs are quite high relativeto labor costs. Paper,glass,

I~~~~~~~~~~~~~
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 On EnvironmentSl Issues

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-ENVItONMENT"ANID
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metals,plastics,oils and other materialscould be recoveredfrom wastestreams
and recycledby networksof workers.
In addition to and in supportof technologicalinnovationsis the strengtheningof
enforcementof appropriate pollutioncontrol laws. Other policy instrumentssuch
as the use of economic incentives to encouragepollutivefirms to installpollution
controlfacilitiesand collecfiveactionssuch as the installationof centralcollection
and treatment facilities for wastewaters are needed to supplement current
enforcementefforts. These are especially important given,the relativelysmall
capitalbaseof enterprisesinvolved. Moreconcdiatoryforms ofpollutionregulation
involvingpersuasionand informationdisseminationaimed at alteringpolluteras
well as end-consumerbehaviorshould also be implementedto cause positive
changein businessattitudestowardsthe environment.
Integration of Population Concerns and Social Welfare In Development
Planning
Population is the critical factor in any effort at sustainabledevelopment.
Populationandthe valuesespouseddeterminethe speedat whichproductivitycan
be increasedor converselythe pressureson land and naturalresourcesbrought
to bear by the process of development. For a developingcountry like the
Philippines,it is importantthat the populationfactor-in all its dimensions-isturned
into a real asset for buildinga strong industrialbase, for multiplyingproductive
forms of livelihood,and for preservingand improvingfragile ecosystemsand the
overallnaturalresourceenvironment
The country'spopulationprogrammustnot be limitedto controllingnumbersbut
must includeimprovementsin health,educationandvalues formation.It must be
implementedas part of a comprehensivesocio-economicprogramat the regional
and communitylevels. The populationprogram must be based on methodsthat
are consistentwith the culturaland religiousnorms of the population. Withinour
traditionalrural society the benefits of additionallabor will alwaysoutweighthe
benefits of reducing familysize. It is for this reasonthat our populationpolicies
must recognizethe limiations of promobingfertility control in isolationfrom other
incentives. To overcomesocial prejudicesagainstbirth controlandsuspicionsof
the motivationsbehindthe nationalpopdation control program,emphasisshould
now be placedon the benefitsto each chifdand to the familyof spacingbirths.
Managingpopulationdistributionand mobilityshould alsobe consideredto limit
the rapid and often uncontrolledpopulationgrowthin urban areas. Promotionof
programsand policiesthat lead to balancedregionaldevelopmentare important.
The developmentpotential of all regionsshould be assessedand programrsto
increase opportunities for livelihood should be implemented to encourage
migrationtowardsless denselypopulatedand lessenvironmentally sensitiveareas.
Inducing GrowthIn the RuralAreas
Economicrecoveryand long-termstabilitydepend on increasingincomes and
employmernt in the rural areas,wherea majorityof our peoplereside. It shouldbe
again noted that the ruralpoor are linkedvery closelyto naturalresources.Their
actionshave a direct impacton naturalresources.Conversely,any changein the
actualand potentialproductvityof theseresourceshaveseriousrepercussionson
their presentand futurewelfare,evenon their very survival.The sheernumberof

10
 rural poor already In place right on or beside fragile ecosystemsmake them a
formidablefarce either for envrronmentaldestructionor protection.
Attentionmust therefore be given to rural development,as it has alreadybeen
establishedthat poverty forces the rural poor to be destroyersratherthan caring
stewardsof the very resourcesthatcan liberatethemfrom poverty. Theeconomic,
social and political potentialsof the countrysidemust be hamessedto alleviate
povertyand uplift the conditons of the rural poor. A rural developmentstrategy
which is characterizedby the followingelementsmust thereforebe effected:
- Empowerment of the rural poor through greater participation
i in policy-making processes and project implementation;
- Accelerated implementation of land reform to achieve equity
in the distribution of wealth and boost producer incentives;
- Grant of equitable access for the rural poor to natural
resource use and benefits;
- Removal of economic policy and public investment biases
against the rural sector;
- Provision of infrastructure and support services to increase
rural productivity and expand markets;
- Establishment and reinforcement of *growth centerso to serve
as base for industrial and commercial activities that can
provide alternative livelihood and increased economic
opportunities for the rural poor;
- Strengthening of social services such as education, health
and nutrition.
Promotion of Environmental Education
Environrnentaleducabon as concievedin the PSSDhas two major objectives.
The first is to enable citizensto understandand appreciatethe complex natureof
the environment,as well as the role playedby a properlymanagedenvironmentin
economicdevelopmentand to developsocial valuesthat are strongly supportive
of environmentalprotectionand whichwill createthe commitmentand politicalwill
to deal with difficuit issues. Only a well-informedand motivatedcifizenrycotud
providethe mass base necessaryfor the continuedprotectionof the envirorunent.

Decisionsare ultimatelya political responsibility,but the likelihoodof the best

I choicesbeing made is greatlyenhancedwhenthereis widespreadknowledgeand
understandingof all aspectsof the issuesat hand. Tnis couic be acnieved
b integratingenvironmentalconceptsin the elementaryand secondaryschools.
This will equip people with the basic capabilityto make up their own mindsin an
informedway and do somethingabout their decisions.
The second objectve is to develop the local knowledgebase about the local
erwironmentand natural resourcesthrough the developmentand promotionof

4.1
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;NATRAL RESOURCES
 tertiary and graduate courses in ecology, environmentalscience, resource
managementand resourceeconomics.Researchand developmentin these areas
shouldbe promoted.
Strengthening of Citizens'Particpaton and ConstituencyBuilding
Lessonsfrom both failuresand successesin environmentaland developmental
eforts have shown that citizens' participationis an important decisivefactor.
Absenceor lackof it has causedfailures. Itsactivepresencehasresultednot only
in effortsmeetingimmediatetargetsbut alsoin the assuredsustainabilityof positive
trends that have been initiated.
Peoplehavethe inherentcapacityto improve themselvesandtheir community.
Problemsconfrontng them can be solved through their own efforts. In cases
wherethe povertyof their situationand the difficultiesthey face aretoo seriousfor
them to deal with, initial assistance from govemment and non-govemment
institutions may be needed. Their active participation in planning and
implementaion,however,is a must so that they will not be foreverdependenton
exemal support.
i In promotingthe activeparticipationof the citizenryfor sustainabledevelopment,
non-govemmentorganizaions (NGOs)can be the central vehicle in mobilizing
peopleto participate. NGOshavecertainadvantages.Theyhaveless bureaucratic
red tape andcanthus movefast Theyhavealreadyestablishedstrong directlinks
wth the grassroots. Their membersare the very citizenswhose participationis
neededand who see their NGOmembershipas a citen's responsibility.They are
thus imbuedwith the neededcommitnentand driveto dealwithc difficultsustainable
-.. development issues.A strategyin this regardis to developa networkamongNGOs
as wel as NGOs and govemmentalorganizationswhichwill work on community
organizing, public information campaigns, research/situation assessment,
environmentalsurveillanceand -nonitoring,science and appropriatetechnology
andthe like.

. :11

12
 3 ASSESSMENT
OF MAJORSECTORS
Thecooceptual frameworkshallbe the basisfor the formulation
of strategiesfor
eachof the identifiedmaJor sectors,namely,Population,Environment andNatural
Resources,Agricultue, Industry,Infatructure and Energy. A reviewof each
sector, exceptfor the Infrastructuresector,has been undertakenas Part of the
formulationprocess. Thissectionpresentsthe preliminary resultsof this review,
includingcurrent efforts,keyissuesandkeymeasuresneeded.
3.1 POPULATION
ftiationr: ThePhilippinepopulationin 1989wasestimatedat 60.1millionand
is expectedto riseby2.3percentto61.5millionin 1990.Wifthregards to population
dstribution,SouthemTagalog,Metropolitan Manila,and Centralhuon are the
countryshighlyconcentrated regions,wih a populationof 8.1 million,7.9 million,
and 6.1 millon,respectively.Themostcommontype of intemalmigrationin the
Philippines is the flowof peoplefromthe ruralareasintothe urbanareas. Forthe
period1975-1980, MetropolitanManilareceiveda total of 378,878rural migrants
followedby SouthemTagalogwith183,077and CentralLuzonwith 101,844.*
The present populationsituation has already strainedthe government's
capabilityto providebasicservicessuch aseducation,healfth
careandfoodfor the
naton. Thecriticalissuesto.bediscussedshouldthereforeaddress thebalance
betweenpopulationsizeandavailable resources;andtherateof populationgrowth
In relationto the capacityof the economyto providethe basic needs of the
populaton.
Kevncem
- Continued rapid population growth which usually leads to a
decline in the quality of life for the majority
- Encroachment of population into marginal ecosystems,
including population settlements in ecologically-sensitive
uplands
- Continued influx of rural migrants into densely populated
r urban areas, which taxes the capacity of these areas to
sustain concentrated populations resulting in congestion,
urban blight, slums, and environmental degradation
t

CurrentEfforts. The directionfor the populationprogramin the countrywas

drawn up in a populationpolicystatementissuedin April, 1987.It specifically
addressessthe following demographicconcerns: fertility reduction,family
formation,statusof women,matemaland childhealth,childsurviva!,morbidityand
mortality,populationdistributionand urbanization,intemal and international
; migration,and populationstructure.The policyalsostressesthe importanceof a
J&

13
 THE FORE$T ECO$YT7Ek

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ENVIRONMENT

4.N
 consistentpopulationgrowthrate in relatonto existingresourcesrecognizingthe
strainimposedby the populationon scarceresources.
Family Planningservicescontinue to be provided by 3,545 familyplanning
clinics/service outlets of govemment and non-government organizations
natiornide. The remoteareasare servedby 39 Comprehensive ItinerantTeams.
Support sytems for these activities include 1,753full-time outreach workers
(FTOW's)and 50,000BarangaySupplyPointOfficers(BSPO's).
The PopulationEducationProgra continuesto work for the integrationof
populationeducationinto the scIool curriculumat all educationallevels. The
AdolescentFertilityProgramthroughits twetveadolescentcentersalsocontinues
to provideinformationand counsellingservices.
In 1987,87 medicalpersonnelweretrainedon basicfamilyplanningandvoluntary
surgicalsterilization.Manpowerdevelopmentand continuingeducaton, which
weremosty foreign-funded,were alsoconducted.
The PopulationInformationManagementand DisseminationProgramalso
conducted widespreaddisseminationactivitieson the new populationpolicy.
Theseincludethe conductof symposiaandconferences,the releaseoftwo issues
of the PopulationBulletinandthe publicationof a weeklynewsletter.
The PopulationPolicyAnalysis and CoordinationUnit of POPCOMis also
continuing its task of colecting, processingand analyzngvarioussources of
informationfor dissemination.
A National Consultationamong 107 Natural Family PlanningNGO's was
convenedto formulateworkableschemeswith NGO'sandwiththe church-based
.FamiyPlanning- MaternalandChildHealth(FP-MCH)network.The*Ugnayansa
jKababaiha?Projectwasalsolaunchedas a vehicleto promotewomen'swelfare
iand strengthenwomen'sparticipation in planninganddecision-making.
Support activitiesto the populationprogram are also implementedby the
1Departent of Social Welfareand Development.These includedaycare and
csupplemental feedingprogram,familyplanningmotivation,
populationawareness,
and sex education. The Departmentof Healthalso promotes/implements the
following programs:primaryheath caredevelopment,controlof communicable
and non-communicable diseases,healthpromotionand specificprotection,food
assistance,selectivehomefood production,nutritioninformatonand education
campaign,andthemalnutriton
prevention
project.
Key MeasuresNeeded
I ' ;'l - Vigorous population program based on methods that are
consistent with the cultural and religious norms of the
population
- Broader scope of population programs to include
improvement of the quality of human resources in terms of
productivity, environmental consciousness. ability to manage
communal natural resources, and social responsibility

14
 - Intensification of rural development with em hasis on
sustainable livelihood programs to reduce the push factor in
rural-urban migration
3.2 ENVIRONMENTAND NATURALRESOURCES
Ecosystems are lifesupport systems. They are capableof renewal,even in the
face of majorman-madedisturbances- but onlyup to a certainpoint. Beyondthis
J limitedthresholdand carryingcapacity,ecosystemfunctionsare impaired;hence
deteriorationoccurs. The challenge for resource managementis to treat the
ecosystemas the unit most suitablefor analysis,so that the maintenanceof vital
rifesupportfunctionsmay be ensured.
This sector is currentlv facing a lot of problems, among them: resource
depletion,environmental degradationdue to pollution,tenurialproblems in
the public domain,and inequitabledistributionand allocationof lands and natural
resources,amongothers.
Forests
;Siuationr. The remainingforestedareasof the Philippines(withoutbrushlands)
is 6.5 million hectares,which is 21% of the country's total area of 30 million
I hectares,and40%of the legallyclassifiedforest lands of 16 millionhectares. The
countryis losing 119,000hectareseachyear or about 14 hectaresper hour dueto
illegallogging,forestfires and slash and bum agricufture.
i lleytConcems
- Degradation of forest lands due to logging as well as
-- encroachment of slash-and-burn cultivators into logged-over
areas;
- Settlement of ecologically-sensitive forest lands due to
population pressure and lack of opportunities in the lowlands
- Poor enforcement of forest protection laws
- Lack of tenurial security, infrastructure support, and social
services for upland dwellers which result in disincentives for
adopting resource conservation measures
| CurrentEfforts. The Departmentof Environmentand NaturalResources(DENR)
launchedthe NationalForestationProgram(NFP)in 1986declaringas a policy the
perpetuationof forest resourcesfor the benefitof present andfuture generations
of Flipinos.,
The NFP restates the key objectives of the govemment's basic policy in
*1 forestationas: adequatesupply of industrialtimber and fuelwood;provisionof
livelihoodfor upland communities;and, restorationand maintenanceof a stable,
functionaiand wholesomeenvironment.The mainfocus of the 14-yearforestation
programis the developmentof productionforestplantationsfor suppliesof timber
j andfuelwood,whileat the sametime rehabilitatingdenudedwatershedareas.

..

1 ~~~~~~~~~~15

rnL.nns'.-
 With the assistanceof programloans from the Asian DevelopmentBank (ADB)
and the Overseas EconomicCooperation Fund (OECF)of Japan, the DENRIs
targetting to reforest through various modes and approaches about 300,000
hectaresby 1992.
The main thrust of the policy framework of the NFP is to position the private
sector communities and familiesas the vanguard of the country's reforestation
efforts. Thus, apart from encouragingthe privatr sector to invest in commercial
forest plantations at its own risk, the policy also directs the employmentof the
privat sector (to include,apartfrom entrepreneursand enterprisesin forestation,
the NGOs, individual farmers and farmers' associations) In executing
government-fundedforestation projects on contract terms. The govemment
considersthat contract forestationwould enableit to make use of the experience
and commercial motivationsof the private sector towards the expeditiousand
efficlentaccomplishmentof NFPtargets, andthat the terms of the contractswould
ensurethat the plantedareaspaid for will actuallygrow into forests.
Projects under the direct administration of the DENR are: Timber Stand
Improvement in second-growth forests, and protection and maintenance of
existing forests. Private sector participationwill be in contract reforestation;
watershed rehabiitation; assisted natural regeneration; bamboo, rattan and
fmangrove plantations; industrialtree plantations,and integrated social forestry
acivities to rehabilitatsforest migrants.
Contractsto reforestor managespecificactivitiesin reforestationareas areopen
to qualified corporations, non-government organizations,communities, tribes
and/or families. DENR pays these private entities and individuals for the
reforestationactivitiesthey undertakein specificsites.
Key MeasuresNeeded
- Reforestation approaches that actively involve the upland
population, and which combine the goals of re-establishing
forests as well as providing sustained livelihood for upland
dwellers
- Intensified development of lowland resources to increase
productivity and divert pressure away from critical uplands
-Preparation of site-specific resource management plans,
based on inventory of resources, census of upland
population, and assessment of carrying capacities
- Devolution of control over the management of forest
resources to local communities and tribal groups based on
of their ability to utilize the common resource properly
- Strengthening of resource access rights for small-holders
through more secure tenurial arrangements and disposition
of remaining A and D lands
- Intensification of environmental information and education

16
 Protected Areas and Blodiversity
Saituoner. The Philppines has a total of 62 national parks and 7 wildlife
sanctuaries encompassingsome 1.3 million hectares, or about 4.3% of the
country'stotal land area. However,someof these parksexistonly on papersince
there is a general lack of funds to Implementprotection activities and field
management of the areas. Almost all designated reserves contain illegal
settementsof Oslashand bumr caingin)farmersandhavebeenparlally modified
or completelydegraded. Criticallyimportantareas,such as BicolNationalParkIn
CarnarinesSur and Mt Apo Natonal Parkin Davao,have been heavilysquatted
and seriously denuded. Others,such as Mt Pulog NationalPark in Benguet,
Quezon National Park in Quezon Province,and Mt. Canlaon NationalPark in
NegrosIsland,are seriouslythreatenedby illegalloggingand Tkainging.
The wide diversityof marineand terrestrialecosystemsformthe habitatsof five
m;ajrforestforrnations(mixeddipterocarp,tropicalmontane,mossyor sub-alpine,
'molave and pine), 8,000 speciesof diominantargiosperms(orchidsand roses),
960 species of terrestrialvertebrates(iand mammals),541 species of avifauna
(birds>,252 speciesof herpetofauna(reptiles),488 speciesof coral, 16 speciesof
mangroves,and 1000speciesof fish. Among the more notableof these are the
following endangered species: the Philippine eagle, Black Sharna, Philippine
crocodile,dugong,and marineturtles. The effectsof hunting,trappingandtrading
of wildlife,aside from habitatloss, have continuallythreatenedthe reproduction
capabilitiesand the survivalof theseendemicplantsand animalsin the Philippines.
| ~Key Coneems
- Ineffective protected areas and parks management systems
- Threats to the existence of valuable flora and fauna as a
result of habitat removal or modification
r
- Need to increase the level of public awareness and
appreciation of the benefits of protected areas
Current Efforts The DENRand the World Bank are undertakinga study and
- reviewof the country's protectedareas in order to rationalize and develop an
integrated protected areas system (IPAS) in the Philippines. The study will
determine existing protected areas to be retained in the new system and
recommendqualified sites for inclusion. The study shall also provide the basic
infbormationfor the preparationof the legislationthat will createthe IPAScode as
mandatedby law. Also, under the Debt-for-NatureSwap Programbetweenthe
DENR,the World WildwifeFund, and the Haribon Foundation,the protecton,
? management and development of two protected areas, namely, St. Paul
SubterraneanRiver NationalPark and E Nido MarineSanctuaryboth in Palawan
-are underway. Experiencefromthe programshallserveas the basisandprovide
a modelfor the management,protectionand developmentof other nationalparks
in the future. The govemmentis also currently conductingcaptive breeding
i; programs for the Philippineeagle, tamaraw, flying lemur, crocodile and other

4Ye 7
:1 17
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 endangeredspecies.NGOs have also been tapped as partnersin conservation
projects.
The survey,rehabilitation,reproduction,conservation,information,traininganc
researchof the country'sdiverseecosystemsand wildlifecomprisethe proposec
NationalBiodiversityProgramof the DENR.Thesurveyandrehabilitabonof critica:
ecosystemssuch as coral reefs, mangroves,wetlands,lakes,riversand lowlanc
forestsshalf be undertaken.Ecologicalresearches,surveys,capbvebreedinganc
re- introductionof endangeredspeciesinto the wild shallbe implemented.The
programshallpromoteconservationawarenessto the publicand establishtraininc
opportunitiesfor field personnelunder the DENR.
KfyMeasures
- Assessment and evaluation of existing national parks and
equivalent reserves towards the formulation of a systematic
management and protection scheme
- Integration of protected area planning into the overall land
use and regional planning
- Implementation of an intensive nature conservation education
program
- Training of managers of protected areas
Urban Ecosystems
Sjituaoner. The migrationof the populaceto urban areaswil continueto pL
pressureon limitedurban land resourcesin the comingyears. By 1990,about 2!
millon or 43%of the nationalpopulationwill be residingin urbanareas. Bythe yea
2000,this will increaseby 40%.
In Metro Manila,7 millionof the total populton crowd636squarekilometersc
land. With a populationthat is increasingat a rateof 3.6%annually,Metro Manil;
will of 11million.
be one ofthe megacitiesinthe worldwitha population
Generationand disposal of solid wastes, air pollution emitted by transpor
vehicles(60%) and stationaryindustrialsources(40%)willcontinueto be a majc
problem. High volume sample measurementsof total suspendedparticulate
(TSP)indicatethat annualaveragesin MetroManilacan exceed250 milligramspe
cubic meter (mglm3),exceedingthe US annualaverageTSPair quality standar
by over 200%.
Furthermore,jeepney, bus and taxi commuters are exposed to excessiv
concentrabonsof RespirableSuspendedParticles(RSP)in the order of 1,00
mg/m3 while millions of Metro Manila residents are exposed to ambier
concentrationsof RSPin the order of 100mg/m3. The long term healtheffectsc
such exposureneedto be determined.
Sulfur dioxide (S02) does not appearto be a major problemin Metro Manilz
There is relativelyless concentrationof heavyindustry near urban centersar
-I consequentlythe levelsof S02 measuredin Manilaare allwell below.05 partspE

18
 million (ppm) on an annual average basis. However,since most of the major
vehiclesin Metro Manilaare diesel-fueledthe exposureof 802 by peopledirecty
exposedto traffic exhaustare higher.
Waterpollution in Metro Manilaand other major urban and regionalcentersis
causedby the general publicand, to a lesserextent,by the industrialsector. All
metropolitan areas in the Philippineshave no efficient sewage collection and
treatmentexcept for some affluentsubdivisionswith residentswho can afford an
expensivesewagetreatmentfacility. Onlyabout 12%of MetroManila'spopulation
is served by a sewerage collection system. The balance of unserved areas
contributeabout 70%of all the biodegradableorganicpollutantsthat flow into the
differentriver systems in Metro Manila. Untreatedor partiallytreated industrial
wastewateris also being dischargedinto rivers, lakes, or esteros.- Thesewastes
for the other 30% of the organicpollutantsthat have all but killed Metro
! Maccount
~~Manila'swater systems.
Municipalsolid wastes or garbage usually finds its way into the river system
through open canals and culverts and-end up in the river system and exert
addiftionaloxygen demand. Metro Manilaalone generatesabout 3,600 tons of
garbageper day and this is expectedto reach morethan 5,000tons pper day in
the year2000. Thereare no sufficientfundsto financea systematicandintegrated
! solidwastemanagementsystemalthougha verythorough solidwastemasterplan
*, has beenformulatedand approvedby a PresidentialTask Force on SolidWaste
Management.
Anotherproblem is the disposalandproliferationof toxic and hazardouswastes
from industri6s. This is especiallytrue in MetroManilawhere69%of the country's
15,000industrialfirms are located. Most of the toxic substancesare apparently
i Xdischargedwithout treatmentinto naturalwaterbodies and coastalwaters.
'. Ke ~Coner
- Pollution from industrial effluents
- Solid waste disposal by domestic, commercial and industrial
* establishments
4~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

- Air pollution from gasoline/diesel fueled vehicles and

industrial establishments
- Population migration to urban areas
I CurrentEfforts. The DENR,in cooperationwith othergovernmentagencies,the
private sector and non-govemmentalorganizations,is currently undertaking a
rivers revival program, foremost of which is the UILOGKO, IROG KO" project
I aimed at lowering the pollution load of the
I Navotas-Malabon-Tenejeros-Tullahan river Gystem. The DENR, being the lead
s agency,has committedto lowerthe industrialpollutionload by 60%by 1992,from
-fi 32,777kg. BiochemicalOxygenDemand(BOD)per dayto about 23,200kg. BOD
per day.To date,the DENRhas loweredthe industryloadby about7%. The MWSS
is committedto implementa basin-wideseptictank cleaningprogramthatwill lower
I the sewageload from the projected1992load of about25,608kg. BODper day to
about 9,978 kg. BOD per day. The National Housing Authority (NHA) is also

19
 committed to remove all the squatter shanties lined along the 26 kilometer
waterway and relocate them within the basin, thus lowering the pollution load. The
Department of Public Works and Highways (DPWH)is committed to dredge the 26
kilometer waterway and build (2) parallel roads alorngthe waterway.

The Inter-agency Committee aims to lower the overall pollution load in 1992 by
50%MO. The cost to implement these programs is about U.S.$25.75 million spread
over the next three years, ending in 1992. The scenario beyond 1992 wiil involve
£ the installation of a sewerage collection and a marine outfall which will increase the
total cost to U.S.$236.8 million. It is expected that the river system will be fully
rehabilitated and the entire 26 kilometer waterway will be capable of sustaining
marine life.
Another component of the river revival program is the Manila Bay Clean Up
Project. This will tocus on six major river network systems which empty their
wastes into Manila Bay. These are:

- Navotas-Malabon-Tenejeros-TuilahanRiver System,
- Pasig-San Juan-Marikina River System,
- Las Pinas-Zapote River System,
- Paranaque River,
- Laguna Lake Basin, and

- Meycauayan River.

The clean-up of Manila Bay will entail the clean-up of the individual sink systems.
Among the projects lined up for lowering the pollution load of each of these
t sources are:
- septic tank cleaning and sewerage collection and treatment for domestic
sewage,
- individual or combined wastewater treatment plants for industrial firms,

- dredging of rivers to remove accumulated debris, and

-transfer of squatter families along the river banks.
The current efforts for air quality management in urban regions are particularly
addressed to the Metropolitan Manila area where most of vehicles and industria,
firms are located. Other urban growth centers, however, have already started anc
are steppingup the air pollutioncontrolprogram.
Vehicle exhaust emission is the most pressing air pollution problem today. Ir
the short-term, activities being implemented to alleviate the situation are steppec
* Jupefforts to enforce the anti-smoke belching law and educational campaians tc
raise the level of awareness and knowledge of motorists and the general public cr
the air pollution problem. In addition to this, the air quality management prograrr

20
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_8_ C _l EN N TAND
NTRAL SURCES
 for Metro Manila proposes the adoptionof long-termpolicy options to minimize
vehicularpollution. Such policy optons would cover a wide range of concerns
such as:
- Incentivesfor low-pollutantvehicles and additionaltax for pollutivevehicles.
- Promotion of *environment friendly"fuel additivesandappropriate pollution
control devices.
- Reguiationof importationof secondhand cars.
-. Developmentof an efficientmasstransportationsystem.
Emissionsfrom industriesand power plants will also be a major concem as
economicdevelopmentprogresses. Major policy options being consideredto
minimizethe air pollutioneffortsfrom thesesectors arethe following:
- Providingdisincentivesfor pollutiveindustriesthat are locatedin Metro Manila
and other urban centers.
- Strictimplementationof land use plansand zoning regulations.
- Promotionof energyconservationand energyefficientproductionprocesses.
- Adoptionof low or non-wastetechnologies.
For an effective air quality managementprogram, it is imperative that the
;monitoringand enforcementcapabilitiesof the environmental
agencieswill alsobe
beefedup. Thus, acquision of monitoringequipmentand manpowertrainingare
I major componentsof the program.
j The SolidWasteManagementPlanfor MetropolitanManilaas conceptualizedby
the PresidentialTask Force on SofldWasteManagementis in its initial stages of
I implementation.Sites havebeen identifiedto serve as sanitarylandfillsin lieu of
operating open dumps. Engineeringdesigns are now being prepared and
reviewedbased on the EnvironmentalImpactAssessmentmade.
Key MeasuresNeeded
- Rational planning of urban centers (dispersal of industries)
- Provision of workable air monitoring networks
- Rationalization of current environmental and pollution policies
- Implomentation of a pragmatic information and education
campaign on the effects of air and water pollution and solid
waste disposal
- Stringent enforcement of laws, ordinance, rules and
regulations
- Implementation of a sound monitoring system

L 21

21
 FreshwaterEcosystems
SiMuationr'There are a total of 384 major riversystemsand 59 lakes and more
than 100,000hectaresof freshwaterswampsin the Philippines. These are used
eitherfor domestic,industrial,irrigationand power-generationpurposes.
Agriculturecontinuesto be the heaviestwateruser, accountingfor 60% of total
withdrawals.The quality of water availablefor irrigationhas been relativelygood.
However,the increasing sedimentationof river systems have resulted in the
reducedwaterconveyancecapabilityof irrigationsystemsand diversionfacilities.
The main causeof this problem is the destructionof watershedsand consequent
soil erosion. Sedimentationcausedby the dumpingof mine tailings in the river
systemsis also a major contributoryfactor.
Anotherenvironmentalproblemwhich is becominga majorconcem is saltwater
intrusion. This problem is characterizedby the movementof saline water into
freshwater aquifersor surfacewaters. The generalmechanismsresponsiblefor
the intrusion are the reversal or the reduction of natural barriers that prevent
movementof saltwater,and the accidentalor inadvertentdisposalof waste saline
water.
Officialreportsof the MWSS and NWRBrevealthat the total area affected by
saltwaterintrusion(excludingMetro Manila)has reached480,802hectares. The
most heavilyaffectedprovincesare CagayaLn,Bulacan,and Cebu.
I. In Metro Manila,the affectedareas may be categorizedaccordingto soulces of
contamination,namely: 1) seawater intrusion - 10,244hectares; 2) seawater
itrusion and connate water - 513 hectares; and 3) connate water - 5,674
hectares. The affectedareas total 19,611hectares. It should be pointedout that
majorityofthe affectedareasareurban and ruralsettlements,whichisa realcause

IHydrogeological
for aarm.
investigation and economic analysisof the groundwater
salinityintrusionphenomenonindicatethe followingimpactson water supply and
the affectedpopulation:
- poor waterquality
- corrosionof wells
- salinizationof agriculturalland due to inundation, subsequentfy reducinc
.! i agriculturalyield
! - reducedrevenuesin some industriesdue to additionalcostof water supply
- revenue loss in public water utilities due to replacement costs where wellE
: became too saline to use
- additional cost for the acquisition of water from piped supply

l
22
. __ _
 Six particularareas in the Philippines,includingthe two major cities - Metro
Manilaand Cebu - were found to be subjectedto continuousdegradationof the
groundwatersupply due to saltwaterintrusion.
Key Concerns
- Pollution due to domestic, commercial and industrial activities
- Agricultural run-offs from pesticides and fertilizers
- Siltation
- Saltwater intrusion
Cuirent Efforts.The DENR,aside from its rivers revivalprogram,is currently
undertakingits river classificabonproject. Of the 384 major riversin the country,
261 havebeenpresentlyclassifiedaccordingto their use.
Key MeasuresNeeded
- Enforcement of laws, rules and regulations.
- Implementation of an information and education campaign
I - Setting up of waste water treatment plants
1 - Implementation of a sound rehabilitation program for affected
freshwater ecosystems
Coastal Resources
Siuaffoner. Becauseof pressuresfrom an increasingpopylationand the drive
towards industrial development, coastal resources have been exploited
indiscriminatelyand its conservation and protection have been overlooked.
Dynamitefishing,siltationand humanencroachmenthaveledto the destructionof
coastalresources. Po0utionfrom industrialcomplexescontinuesto be a growing
problem.
A recent satellitestudy revealsthat mangroveand coral resources,two of the
a most important coastal habitatshave been severelydegraded. Of the 500,000
hectaresof the originalmangrovespeciesvegetabonin the 1920's,only 38,000
hectaresare left today. However,satelliteimageryshowssome149,000hectares
of secondarygrowthmangrovevegetation.
The estiriated coral coverof the country's coastalresourcesis almost 33,036
squarekilometer. Only5 to 6 percentof.thisis classifiedas in excellentcondition.
* The coastal areas are also the final destnation of most of the mine tailings
generatedby the miningindustry. Duringthe last 3 years,minetailingsgenerated
4 totalledover 2 billion DMT. In additionto land-basedpollution,pollutionfrom ship
2 andoil spills are common.

23
 .dW THE
hIt@a COASTAL 10mr,

/14/~IM

f - ,v. XrmaX

_ _. .. _ t i[_ _
L . L _
l
r~~~~~~~atMA cm..... I .1. IROHI
.
- _ _ ma

01 VPs
_s~~~~~~~~~~~~~~~~~~~~~~41c

M &,aj asu;_ a _r _sz

ecn: stdygm
*sieDarx th

Mt LtL0
OItRLWOOD tCOAFLRZSHC RCE
PMl r_1_21
we
_P_~~~~~~~~~b %=M"~_ .

53.ln7 2D1420T11"1 -
_*e_-s307.e0ha_1or
i -
.

.: . ,,,~~~~~~~ewnmwm _ _ie
5Kecoti ma me,. .. m. _a0.3
*eoe~~m~emp,jSSeI

WRT7ENT
DE OF
MR- AND
ENWONCMENT
*NAT;URA RESOLLRM5
 l ~~KeyGon=ms

- Overfishing of nearshorefishing areas due to expanding

coastal population
- Continued widescale use of Illegal fishing practices
- Degradation of coral reefs which is due to a combination of
silt deposition and destructive fishing methods (blast fishing
and muro-ami)
- Disappearanceand degradation of spawning areas, notably
mangrove and mangroveareas, due to conversionto
fishponds and other uses
- Encroachmentof commercial fishing vessels into nearshore
areas reserved for small (municipal) fishermen
- Ineffective administrativearrangementsfor regulating coastal
j and marineresources
KayMeasuresNeteed
- Identification and quantification of point and non-point
sources of pollution
S-etting up of centralizedtreatment plants for domestic wastes
and wastes of similar industry types
- Containment of oil slicks
- Control of siltation by reforestation
- Granting exclusive rights to small fishermen
| - Conductof hydraulicstudiesin aquifers
- Stepped-up enforcementof fishing laws and zo:;-ng rules
- Common property managementarrangements,i.e., assigning
common property rights to coastal communitiesor fishermen
l . organizations in the use and protection of coastal fishing
areas
- Preparation of site-specific fishery resources mm.1agement
I * - z1!', * plans based on inventoryof resources and assessmentof
sustainable fishing yields

24
 - Rehabilitation of coastal resources (coral reefs and
mangroves) to sustain fish yields, including measures to
enhance productivity through artificial means, e.g., artificial
reefs
- Provision of alternative livelihood opportunities for coastal
communities to reduce reliance on fishing as a source of
income
- Intensification of environmental information and education
Land and Mineral Resources

I SituatiriLffl Pollibon of land resourcesmay be traced to threegeneralsources:

solid wastes from domestic, commercial and industrial acdAties; agricultural
pollutionfrom pesticidesand fertilizers;and pollutionfrom mining activities. The
extensiveuse of fertilizersand pesticidesis continuouslypollutingthe country's
land resourcesand is causingsoil deterioration.
The land resourcesof the countryare alsovulnerableto soil erosion. Presently,
at least 21 provinces are known to have more than half of their areas eroded.
1 About 9 million hectares of alienableland are eroded in varying degrees and
approximately1 millionhectaresof agriculturallands havean 8-15%slope making
- it susceptibleto severesoil erosionduringthe rainy season. Improperagricultural
I practicesby farmersmaketheselands unproductive.
The Philippinesis endowedwith rich and varied mineral resources,much of
which remainsto be exploredand exploited. Wih such a vast mineralresource,

I
*
the Philippinemining industry has playeda major role in the economicgrowth of
the country. Concomittant with mineral exploitation however, are the
environmentalproblemsgeneratedby mining,panningand millingactivities. Huge
quantitiesof waste and mine tailings have to be dumped. These can cause
pdnuion of rivers and marine ecosystems, and damage irrigationcanals and
farmlandsby siltation. Vegetativecoverhas to be removedto giveway to an open
pit mining operation, and for sites of waste dumps and tailing ponds. Toxic
chemicalslike mercury, used by thousandsof small-scaleminers,find their way to
the riversystemevenin urbanareas. Landslidesandflashfloodsoccur at alarming
rates in areas defacedby unsystematicmining operations.
g KeyConcems
- Unregulated importation, distribution and use of toxic and
hazardous substances
- Incompatible land-use practices
- Unregulated mining activities and dumping of mine tailings
I and wastes
I - Indiscriminate use of pesticides and fertilizers
I - Lack of awareness and education on the part of the public
regarding the ill effects of pollution

25
 gM POMMARAL

.
I~~~~~~P
.. -- 3 &., B 4 -^ ~ - E -eA_2. -I-M_
X
"
>--4S
d o__w-_~Z

bmt a-r St - aX:''vU'

A~-.M.- -
j ~ ~ ~~ N_ Mr. m a _ Aam.............................. o, _ ;;¢ w- - , - _,

~ ~~ ~ ~~~~~~~~~O
mftm~ 111,11C PEAR1O

WntA.c A" -^U-W

Er

RESOtlC
r NATWt~~~MMMM11AL

,.. ~~ ~~~ ~ ~ ~~~~~~~~~~~O IIGOEAoi

___? _ . _ ._~~~~~~~~~~~~~~~~~W
.,low
 Current EffolM. The DENRmanagesthe mineralresourcessector and is
empoweredto overseethe activitiesconcerninggeologyand mineralresources
exploration,developmentand conservation. The EnvironmentalManagement
Bureau, a bureau under the DENR, administers the EnvironmentalImpact
Assessment System whichhas regulatorycontrol overproposedmhningprojects.
Pollutionandotherrelatedproblemsgener.itedbythe industryareregulatedbythe
fieldofficesof the DENR.
Key MeasuresNeeded
- Formulation of a national land use plan
- Implementation of an effective information and
education campaign on the causes and effects of land
pollution
- Stringent enforcement oi environmental laws, local
ordinances, rules and regulations
- Immediate enactment of a law for the sound management of
toxic and hazardous substances
- Implementation of an efficient monitoring system to prevent or
abate the degradation of land resources

3.3 AGRICULTURE
33AGRC WdL h thU FRpE populationnearing60 millionin 1989,and a tote
land areaof 30 millionhectares,the landareapercapitais about0.5 hectare.ThiE
per capitaagriculturallandis lowerthan the world averageof aboutone hectare.
As of 1980,the Philippineshas about9.70 millionhectaresof agriculturalland
An estmated3.7 millionhectaresof these landsare plantedto palay,2.0millior
hectaresto com, and2.8millionhectaresto coconuts.The remaining1.2millior
hectaresof agriculturallandareplantedto crops liketobacco,sugarcane,citu-s
vegetables,abacaandothers.
growthwas basedprimarilyon landincreaseat th
Untilabout1960, agricultural
extensivemarginwith littlechangesin cropping intensity,technology,and tot:
productivity. In 1979 and thereafter,there was a shift to increasinglar
margin.
productvityat a very intensive
The increasing demands by a growing population for higher agricultur
production now threatens the very sustainabilityof thecountry's naturalresource
Socio-economic factorssuch as inequitabledistributionor lack of access to larl
aggravate further the problem.
The problem of soil erosion in the Philippinesis quite pronounced due to
geographical and climaticconditions. For example, 31%of the country's total la
area is hillyand mountainous,and thus susceptible to erosion.

26
* 4m *.,. ~~ ~v
~IN

44 ~ ~ ~ * ~.* **%~.*,~

la~~~~~~~~~~~~~~

MIMI!~~~~~~~~~~~~~~~~~~~~~~~(fl i

soU
~""~
 The recent shift from use of chemicalfertilizersto organicfertilizersis gaining
ground even among our farmers. The IntegratedPest Managementprogram is
similarlygainingattention.

Key MeasuresNeeded
- Preparation of site-specific agricultural resource
inventories to assess sustainable production potentials and
population carrying capacities
- Efficient and intensive farming systems based on small-scale
farm units and use of organic farming, nutrient cycling
techniques and integrated pest management
- Multi-purpose development of forest lands to provide
livelihood opportunities through sustainable upland farming
- Utilization of the agricultural development potential of the
uplands through combination of appropriate farming
technologies, provision of infrastructure, and establishment
of institutional support (e.g., tenurial arrangements)
D-iversion of pressure away from the uplands through
intensified distribution and development of agricultural arsas
in the lowlands
- Policy and fiscal measures to encourage or direct a long-term
. shift of agriculture away from reliance on chemical fertilizers
! iVi:and pesticides
- Intensification of environmental information and education
:. . _
34 INDUSTRY
Situaoner Without doubt, industrializationmust be pursued. It is the vehicle
thomughwhichwe expectto solve problemsof mass povertyand unemployment.
* I' -However, industry withdraw materials from the natural resource base anc
generates pollution. Depending on the overallframework of the policy to be
-; , .adopted, industrialization has the power either to enhance or degrade thE
environment.
A.. tie industrialsector registereda positivegrossvalue added (GVA)of 8.02%ir
1987. Growthwas principallyattributedto therenewedbusinessconfidencein thE
;;-jJi economy due to the improved consumerspendingand perceived political anc
; ': economicstability.
The growth in the industrial value-dded was accounted for by improve,
performancein manufacturing(7.12)and electricity,gas and water subsector
-' (10.74). A strong domesticexpenditureprogram,stableconsumerprices and
demand for manufacturedexport products in the world market enhanced th
growth of manufacturingindustries. Increasesin the growthlevelof the electricit'

..I
*j 28
 gasandwatersubsectorcan be attributedto the higherconsumptionof powerand
waterby commercialand Tndustrial
firms.
The constructon industry recoveredfrom last year's poor performancemainly
becauseof the availabilityof credit at low interestrates which fueled govemment
and privW investments In the sector. The mirung and quarrying subsector
however,sufferedfrom the inabilityto respondto metalprice increasesin view of
incased productioncosts basedon risng oil prices and the low grade of
millsin most mines.
Investments also showed a strong turnaround in 1987. The Board of
lnvestmaents(BOI) - approved equity investmentsgrew by 165.7 percentfrom.
P3.15billionin 1986to P 8.35 billionin 1987.This was brought about by the 217.7
percnt increase in Filipinoinvestmentsamountingto P3.43billion and the 115
percentgrowth in foreigninvestmentsamountingto P3.43billion. The U.S.Japan,
andHongkongwere the Philippines'major investorsaccountingfor 55 percentof
the total foreign investmentsfor 1987.
Interms of regionalcapitalinvestment,the NatonalCapitalRegionandSouthem
Tagalogregistereda 95 percentincreasein paid up capitalstock of existingand
newdomesticstock corporations.
The industrial sector is projected to continuallygrow with the thrust towards
exportpromotionand selecive importsubstitution.The miningsector is expected
to recoveras a resultof the promotionof small-scalemining,increasedproduction
of non-metallicmineralsand expansionof foreign and local markets for mnineral
ffi commodities. The growth of domestc resource-based industies is likewise
expectedto enhdnce the growth of the manufacturingsubsector. importsshall
enjoya steadyincreaseand will comein terms of paymentsfor raw- materialsand
Il intermnediategoods, capital goods and oil requirementsof large-scaleindustrial
j- andother major infrstructue developmentprojects. However,total importvalue
j8 is expectedto decreasedueto the utiizationof indigenousenergysourcesandthe
adopbonof energy conservationmeasures.
J
> ~Kev Coneems
- Build-up of industrial infrastructure resulting in necessary
increases in energy and raw material re-'iirements from the
natural resource base
- Pollution and waste resulting from ind-us;isal activities

I - Concentration of industrial facilities in urban areas

- Environmental risks of new industrial technologies
- Relocation of pollutive heavy industries from industrial
countries to developing countries like the Philippines
X Effort. In order to enhancecontinuedgrowth in the industrialsector,
[Current
the govemment prepared a ten-year sectoral developmentprogram. In the
prgram, ten (10) industry sectors were identifiedfor short and long-term action
plans. These are: agri-based industries, forest-based industries, wearables,

29
 chemicals,construction,toys, gifts, fumiture and housewares,services,mining
and other extractives,metals,engineering,electronicsand telecommunication
industries.
The govemmentcontinuesto promotethe developmentof Cottage, Smalland
Medium Enterprises (CSME!s)through a package of assistance programs
development,researchandmarketing,ard
consistingof financing,entrepreneurial
technical assistance.Supportactivitieswere alsoprovidedin the form of projects
on technologytransfer,trining, productivityawarenessseminars,technicaland
managementinformation.
IThegovemmert alsocreatedthe Micro, Cottage,Smalland MediumEnterprise
Counci (MICSMEC)in 1987to coordinate efforts in the subsectorand In the
agencies involvedIn CSME development Another effort to sustain industrial
growthIs the creationof 1,158People'sEconomicCounals(PEC).
Another program implementedwhich aims to providefinancialresourcesand
techrnicalexpertisefor countrysidedevelopmentis the Agricultural,Small and
Medium IndustriesLendingPrograms(A-SMILE)alongwith the Agro4ndustrial
j TechnologyTransferProgram(ArTTP).
The regionaldispersalof industriesis being promotedto distributethe benefits
of industriazaon to the countrysideand encourageself-reliantand productive
commurnites.The sub- componentsof the programarethe NationaProgramfor
| .. EstateDevelopment
I~~~~rx-ial andthe LivelhoodProjects(e.g.. 1( S)
.he govemmeritalsograntedfiscalincentivesto deservingfirmsto makeup for
market distortions. Incentivesinclude outright tax exemption,tax credit and
preferentialtax treatment

- Establishment of environmental goals, policies and standards

to regulate industry sector decisions involving location,
pollution control, waste management, occupational health
and safety of workers, energy and raw material usage, and
disposal of toxic substances
- Support in terms of policy, research, economic
instrumentstmarket mechanisms for the promotion of
recycling or reuse of industrial raw material and by-products
- Rural infrastructure development to promote dispersal of
industries to the countryside
- Fiscal measures (e.g. tax incentives, subsidies, pricing
policies) to encourage adoption of pollution control
.
*i technologies by both large and small-scale industries
- Adoption of the "polluter pays" principle

!-0; ~~~~~~~~~~~~30!
 - Vigorous enforcement of the Environmental Impact
Assessment (EIA) System in making decisions in industry
planning
- Establishment of a tracking system and capability to deal with
toxic and hazardous chemicals and wastes
Amongthe projectsneedingpriority attentionin this sector are:
- ToxicChemicalsand HazardousWastesManagement
- EnvironmentalCarryingCapacityProfilesof ProposedGrowthCentersOutside
Metro Manila
- Intensificationof Small-ScalePlanningOperation for the Developmentof
AncillaryIndustries
- Developmentof an InformationBaseon Land Use and Fiscal Planningfor
Urbanand Other GrowthCentersin the Countryside
- Proqramsto ProvideTechnicalAssistanceon the Abatementof Air Pollutionto
DENRRegionalOffices
- Air andWaterQualityMonitoringNetwork

3.5 ENERGY
Situationer. After the energy crisis of 1973-1974,energy developmentin the
Philippinesled to the partial replacement of oil by indigenoussources such as
coai, hydroelectricpower, geothermal,and other nonconventionalsources. The
non- conventionalsourcesinclude bagasse,agriwaste,and dendrothermal.
The country'stotal energyconsumptionin 1988reached110.53millionbarrelof
fuel oil equivalent(MMBFOE),10.3 percent higherthan the 1987 consumption.
Importedenergy accountedfor 62.3 percent of the total percent from the level
attainedin 1987. The increasein the totalenergyconsumptionis attributableto the
effortsto sustainthe country's economicrecoverymomentum.
Indigenousenergyproductionamountedto 41.70MMBFOE,accountingfor 37.7
percentof the total consumption. Out of total indigenousenergyconsumption,
geothermalaccounted7.6 percent, hydro - 9.8 percent,oil - 1.8percent,coal -3.9
percent,and non-conventional- 14.7percent.
The 1988-1992MediumTerm EnergyPlanoutlinedthe sector'spolicythrustsas
follows:
- Promotionof energyself-reliance
- Rationalizabonof energy prices to reflect the true cost of productionand
distribution
- Encouragement
of energyconservationmeasuresto promoteefficiency

31
 - Partcipaton of the privatesector in energy projects
- Maintenanceof environmentaland safetymeasuresfor energyprojects

Key Qonrarna
- Need for growth in energy supplies and power generating
facilities to promote and sustain economic development
- Potential adverse impacts of large-scale energy resources
development
- Wasteful energy utilization due to old and inefficient
generating facilities and distribution system
- Reduced lifespans of hydro-electric systems due to rapid
siltation and degradation of watersheds
- The growing shortages of fuel wood in rural areas due to
deforestation
- Several foreign exchange difficulties as a result of paying for
imported oil
- Energy technologies have the potential to perturb critical
environmental processes as well as threaten human health
- No energy technologies are free of environmental risk
Current EfforI-: To assurethe countryof a stablesupply of energy,the following
activitiesare being undertaken:
- Oil exploration and drilling both on-shore and off-shore are continuously
pursued. A total of sevenwells were drilled in 1988. The oil discoveryat North
Masinloc,and Galocincreasedthe numberof oil producingfieldsto six, bringing
the total productionto 2.18millionbarrelsor 6.9 percentfrom the 1987production
level.
- Coal exploration was intensifiedwith the launching of the small scale coal
mining program. The coal mining industry produced 1.29 million metrictons in
1988.
- Geothermaldevelopmentactivitieshaveintensifiedin 1988,with the adoption
of a new power program recognizingthat geothermalsteam could be a major
power source. To date,thereare 197wellsthat are producingan estimatedpower
potential of 1,228megawatts.
- In the nonconventionalsector,studies and promotionalactivitiesthat cover a
wide range of potentialindigenousenergysourcesare beingundertaken.
Key MeasuresNeeded

32
 - Environmental aspects should be integrated Into energy
policies both at the formulation and implementationstage
- Promotion of energy conservation measures which have
positive environmentaleffects
- Accelerate the development and exploitation of new and
existing energy sources, taking into consideration
environmental requirementsand precautions to minimize
adverse environmentalImpacts
- Active support In terms of research and fiscal measures (e.g.
tax incentives) for the developmentand integration of non-
conventional renewableenergy systems (biomass energy,
wind, solar, mini-hydro)
- Clarification of energy development alternatives (e.g., coal
versus geothermal) to inform the public on the necessary
trade- offs involved (economic, social, and environmental)
- Energy pricing scheme that includes paymentfor
environmental damagesor environmentalrehabilitation costs.
directly attributable to energy development

.1.

*1** ~~~~~~~~~33
~~~~~~~~~~~~~~~~
- --- - - -
 FOOTNOTES
(t) Salas, Rafael,M. Reflectionon Population, Pergamon Press,
NewYork, 1984.p. 63.
(2) Factoran,Fulgencio,Jr. Population,Resourcesand the Philippine
Future:An EcologicalPerspective,Paperpresentedat the First Rafael
M. Salas Foaum,24 October,1989.
(3) Roque, Celso R. The Presentand Future State of the Philippine
Environment,KalikasanPress,QuezonCity, 1989.
(4) Ibid.
(5)Cruz,Wilfrido;Francisco,HerminioA. andConway,ZenaidaT. The
On-Site and DownstreamCosts of Soil Erosion in the Magat and
PantabanganWatersheds,Joumal of PhilippineDevelopment.Vol.
XIV, No. 2, Phil.Insttute for DevelopmentStudies,1987,p. 88.
(6) Porter,Garethwith Ganapin,DelfinJr. Resotirces,Populabonand
I the Philippines'Future,WRi Paper No. 4. World ResourcesInstitute.
A .'-t 1968,p. 38.

Ii ,,IV
,.*.4. (7) Ganapin, Delfin Jr. Opening Remarks of the Director,
I *'.'!1-ironmentci Management Bureau, Seminar-Workshopon the
Development of an EnvironmentalEducation Strategy for Sustainable
i.....
,;1. iDevelopmentin the Philippines,Sulo Hotel, Quezon Cty, 23 October,
. I:
.'~ 1989.

I I.j~IJ
;iN

I 11.-

I: .I 3
1 -;i'-

! 1 !4'

4:&.lo'
.4

Appendix B
- Figures

I
I

21 __ _ __
 FORESTAREA AND POPULATION(1930 -1984)

FOREST AREA (milllion hectares) POPULATION (milllon people)

l04

12A (lllonhecc
FORST YEAR PPILUIO mli epe

.1 ~~~420

2 I --- ~FOR~ESTAREA +POPULATION j1

i 0
FOT1930 1939
I . .

1948
.

1957 1966 1975

I0

1984
 CORRELATION OF POPULATION DENSITY
AND FOREST COVER, 1980
Has/Person Forest Cover (%)
4 - 100

3.58

8-

2- 50

0 0
1 3 4 Palawan 5 6 7 8 9 la 11 12

RE GI O NS
FIGURE 2
 41~~~~~~~~~

POPULATIONDENSITYAND, POVERTYINCIDENCE
BY REGION,1980
30Persons per km 2No. of families
300 ~~~~~~~~~~~~~300

25025

150 150

100 ~~~~~~~~~~~~~~100

,' - 50

0
1 2 3 4 5 6 7
REGIONS 8 9 10 11 12

s Population Density Agri. Families In

the bottom 30%